OPEC to slash oil output, Russia may contribute
Thursday, 18 December 2008
ORAN, Algeria, Dec 17 (AFP): OPEC was set today to announce a significant cut in oil output as the cartel seeks to support plummeting crude prices and producers' incomes, while non-OPEC oil exporter Russia may also slice production.
The Organisation of Petroleum Exporting Countries, whose 13 member nations together pump 40 per cent of world oil, will announce an output cut of about two million barrels a day following a meeting in Oran, the Saudi oil minister said.
OPEC member Qatar meanwhile stressed ahead of the ministerial meet that the cartel needed the help of non-OPEC oil producers, notably Russia, to carry out the planned cut.
"OPEC alone cannot do everything," Qatar Oil Minister Abdulla al-Attiyah said on arriving in the Mediterranean port city of Oran.
"Really, I don't know how we can manage those two million (barrels). Maybe we (will) have the support of Russia and others."
OPEC would like to see non-members slash their oil production by between 500,000 and 600,000 barrels a day, OPEC Secretary General Abdalla Salem El-Badri said Tuesday. Such a reduction would bring the total cut to as much as 2.6 million barrels.
Russian Deputy Prime Minister Igor Sechin said late Tuesday that Russia may slash daily oil export by up to 320,000 barrels, on top of a similar cut made in November.
Several OPEC members heavily dependent on oil exports, notably Nigeria, Ecuador and Venezuela, are being squeezed financially after oil prices plummeted 70 per cent from record highs of 147 dollars a barrel in July.
World oil prices plunged more than three dollars on Tuesday after OPEC revealed the likely size of its output cut this week before recovering to stand at about 45 dollars a barrel.
"There will be a cut of about two million barrels," Saudi Oil Minister Ali al- Nuaimi said on arriving in Oran on Tuesday.
The Organisation of Petroleum Exporting Countries, whose 13 member nations together pump 40 per cent of world oil, will announce an output cut of about two million barrels a day following a meeting in Oran, the Saudi oil minister said.
OPEC member Qatar meanwhile stressed ahead of the ministerial meet that the cartel needed the help of non-OPEC oil producers, notably Russia, to carry out the planned cut.
"OPEC alone cannot do everything," Qatar Oil Minister Abdulla al-Attiyah said on arriving in the Mediterranean port city of Oran.
"Really, I don't know how we can manage those two million (barrels). Maybe we (will) have the support of Russia and others."
OPEC would like to see non-members slash their oil production by between 500,000 and 600,000 barrels a day, OPEC Secretary General Abdalla Salem El-Badri said Tuesday. Such a reduction would bring the total cut to as much as 2.6 million barrels.
Russian Deputy Prime Minister Igor Sechin said late Tuesday that Russia may slash daily oil export by up to 320,000 barrels, on top of a similar cut made in November.
Several OPEC members heavily dependent on oil exports, notably Nigeria, Ecuador and Venezuela, are being squeezed financially after oil prices plummeted 70 per cent from record highs of 147 dollars a barrel in July.
World oil prices plunged more than three dollars on Tuesday after OPEC revealed the likely size of its output cut this week before recovering to stand at about 45 dollars a barrel.
"There will be a cut of about two million barrels," Saudi Oil Minister Ali al- Nuaimi said on arriving in Oran on Tuesday.